This paper introduces the most comprehensive data available to date on centralized and decentralized exchanges run off of distributed ledger technologies. First, we document the rapid growth in decentralized exchanges and their differences in volume and price dynamics from centralized exchanges....

The interest in decentralized financial markets and cryptoassets is growing steadily, with by now an operationalized asset volume and assets under management (AUM) accounting towards a monetary equivalent of several billion USD. With growing public and investment interest, an intense academic...

Stablecoins rise to meet the demand for safe assets in decentralized finance. Stablecoin issuers transform risky reserve assets into tokens of stable values, deploying a variety of tactics. To address the questions on the viability of stablecoins, regulations, and the initiatives led by large...

In this paper, we consider the concept of a 1-tier national monetary system based on a digital sovereign currency issued by a central bank. In contrast to the approach, based on a centralized technical infrastructure, used in most, if not all, CBDC projects, we suggest to use a decentralized...

Despite the growing adoption of decentralized exchanges, little is known about their market quality. Using a comprehensive dataset, we compare decentralized blockchain-based venues (DEXs) to centralized crypto exchanges (CEXs) assessing two aspects of market quality: price efficiency and market...

Although blockchain technology and cryptocurrencies have grown in popularity over the past years, there does not seem to be a consensus if they bring any value to economic interactions. In this paper, I argue that a fundamental value the blockchain provides is commitment. I develop a model of an...